Insurers Need to Serve Not Profit

Having left my previous employment and struck out on my own, I now face the unfortunate reality of searching for affordable individual health insurance. Filling out the application requires an idiot-savant-like capability to remember every last medical detail for my family from the last 5 or more years. And the follow-up call from the underwriter gives me a clear sense of what coverage they want to avoid as a pre-existing condition.

I know that those doing the insuring seek to minimize risk. That’s why they would prefer to insure large groups. (They’ll happily insure individuals, too, up to a point and for a price. ) Don’t get me wrong. I can understand minimizing risk. Heck, that’s why people by insurance – minimize their personal risk by putting it on someone else, namely an insurance company.

What gets me is minimizing risk for the sake of increasing profits. Based on my experience, though I know I am not the only one, insurance companies come off as wanting to collect premiums without ever having to pay it back. It is a complete disregard for the insureds motivated by a desire to please the investors. (See my post “Why I Hate My Mortgage Company” on The Paddlewheel blog for similar discussion.)

The earliest forms of insurance were based on neighbors helping neighbors, serving each other as part of a community. That is the model we need. Not just for health insurance but for all types.

It’s not a difficult proposition, especially when you take a long-term view:

• Guarantee coverage, even for pre-existing conditions and location hazards
• Help mitigate risk through education and discounts
• Pay people on time(if not early); don’t hold on to the money
• Treat your customers and payees like you actually care about them
• Charge a fair premium, even if it is not the lowest

When people receive great service and believe they are treated fairly, they tend to be loyal and recruit other customers. Insurers driven by mission and not profit will truly serve their customers. And in the long run they will see greater success.

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